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The Inter - Governmental relationship between Central and State Government - Printable Version

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The Inter - Governmental relationship between Central and State Government - FDArchitects - 12-08-2016

Inter - Governmental relationship between Central and State Government in case of development of any Housing Scheme

The housing industry of India is one of the fastest growing sectors. A large population base, rising income level and rapid urbanization leads to growth in this sector. In the Federal structure of the Indian polity, the matters pertaining to the housing and urban development have been assigned by the Constitution of India to the State Governments. However, the Union government is responsible for formulation and implementation of social housing schemes. Various initiatives and schemes implemented by central government for rural, urban and EWS housing.

 
Pradhan Mantri Awas Yojana  Housing for All (urban) 
The Mission will be implemented through four verticals giving option to beneficiaries, ULBs and State Governments. These four verticals are as below:
1.       “In-situ” Slum Redevelopment using land as Resource
2.       Affordable housing through credit linked subsidy;
3.       Affordable housing in partnership with Public & Private sectors and
4.       Subsidy for beneficiary-led individual house construction or enhancement.
Slum Redevelopment using land as Resource
Central grant of Rs. one lakh per house, on an average, will be available under the slum rehabilitation programme. A State Government would have flexibility in deploying this slum rehabilitation grant to any slum rehabilitation project taken for development using land as a resource for providing houses to slum dwellers.
Housing through credit linked subsidy;
 
Under the Credit Linked Interest Subsidy component, interest subsidy of 6.5 percent on housing loans availed upto a tenure of 15 years will be provided to EWS/LIG categories, wherein the subsidy pay-out on NPV basis would be about Rs.2.3 lakh per house for both the categories.
Affordable Housing in Partnership (AHP)
To increase availability of houses for EWS category at an affordable rate, States/UTs, either through its agencies or in partnership with private sector including industries, can plan affordable housing projects. Central Assistance at the rate of Rs.1.5 Lakh per EWS house would be available for all EWS houses in such projects.
State will decide upper ceiling on sale price of EWS in rupees per SQM of carpet area ( For example in CMJAY (Chief Minister’s Jan Awas Yojana) 2015  sale Price for flats shall be Rs.1200/ sq.ft (Including Rs.50 / sq.ft for maintenance funds and Rs.50/ sq.ft for EDC to ULB) for both EWS and LIG Units, out of which Rs.1100/ sq.ft. shall be paid to developer. In case of plots 25% of reserve price and 60% of reserve price for EWS/LIG plots respectively.
Beneficiary-led individual house construction or enhancement
The fourth component of the mission is assistance to individual eligible families belonging to EWS categories to either construct new houses or enhance existing houses on their own to cover the beneficiaries, who are not able to take advantage of other components of the mission. Such families may avail of central assistance of Rs. 1.50 lakhs for construction of new houses or for enhancement of existing houses under the mission.
 
State share is not fixed for determining unit cost of houses to be built under the PMAY (U)-HFA scheme.
However, for on- going RAY projects subsumed in PMAY (U), Central and State funding is to be in the ratio of
·         60:40 (city population < 5 lakhs),
·         50:50 (city population > 5 lakh) and
·         80:20 (North Eastern and Himalayan States).
 
Indira Aawas  Yojna  
IAY is the flagship rural housing scheme which is being implemented by the Government of India with an aim of providing shelter to the poor below poverty line. The Government of India has decided that allocation of funds under IAY (Indira Awas Yojna)will be on the basis of poverty ratio and housing shortage. IAY is a Centrally Sponsored Scheme funded on cost sharing basis between the Govt. of India and the States in the ratio of 75:25 respectively.
The objective of IAY is primarily to help construction of new dwelling units as well as conversion of unserviceable kutcha houses into pucca/semi-pucca by members of SC/STs, freed bonded labourers and also non-SC/ST rural poor below the poverty line by extending them grant-in-aid.
 Scope:
IAY is a beneficiary-oriented programme aimed at providing houses for SC/ST households who are victims of atrocities, households headed by widows/unmarried women and SC/ST households who are below the poverty line. This scheme has been in effect from 1st April, 1999.
 
Credit-cum-Subsidy Scheme for Rural Housing      
 There were a large number of households in the rural areas which could not be covered under the IAY, as either they do not fall into the range of eligibility or due to the limits imposed by the available budget. On the other hand due to limited repayment capacity, these rural households cannot take benefit of fully loan based schemes offered by some of the housing finance institutions. The need of this majority can be met through a scheme which is part credit and part subsidy based.
Funding:
The funds are shared by the Centre and the State in the ratio of 75:25 respectively.
 Objective:
The objective of this scheme for rural housing is to facilitate construction of houses for rural families who have some repayment capacity. The scheme aims at eradicating shelterlessness from the rural area of the country.
 Scope:
The scheme provides shelter to rural families who have not been coveted under IAY and who are desirous of possessing a house. All rural households having annual income up to Rs. 32,000/- are covered under this scheme.